5 Best Industrial ETFs

1. First Trust RBA American Industrial RenaissanceTM ETF (NASDAQ:AIRR)

5-Year Performance as of August 13: 98.98%

First Trust RBA American Industrial RenaissanceTM ETF (NASDAQ:AIRR) aims to achieve investment outcomes that generally mirror the price and yield performance of the Richard Bernstein Advisors American Industrial Renaissance® Index. Established on March 10, 2014, the ETF offers an expense ratio of 0.70%. As of August 11, 2023, First Trust RBA American Industrial RenaissanceTM ETF (NASDAQ:AIRR)’s portfolio comprises 49 stocks. It is one of the best ETFs to buy. 

Sterling Infrastructure, Inc. (NASDAQ:STRL) is the largest holding of First Trust RBA American Industrial RenaissanceTM ETF (NASDAQ:AIRR). Sterling Infrastructure, Inc. (NASDAQ:STRL) is involved in e-infrastructure, transportation, and construction solutions, focusing on the United States market. On August 7, Sterling Infrastructure, Inc. (NASDAQ:STRL) reported a Q2 GAAP EPS of $1.27, beating market consensus by $0.34. The revenue increased 13.1% year-over-year to $522.3 million. 

According to insider Monkey’s first quarter database, 17 hedge funds were bullish on Sterling Infrastructure, Inc. (NASDAQ:STRL), compared to 19 funds in the preceding quarter. Chuck Royce’s Royce & Associates is the leading stakeholder of the company, with 512,419 shares worth $19.4 million. 

Here is what Wasatch Micro Cap Value Fund has to say about Sterling Infrastructure, Inc. (NASDAQ:STRL) in its Q1 2021 investor letter:

“The first is Sterling Construction Co., Inc. (STRL), which specializes in higher-margin work on highways, bridges, airports, water and sewer facilities, light-rail projects, flat concrete for subdivisions and foundations for data centers. For companies such as Sterling, we like to look at a metric known as EV (enterprise value) to EBITDA. Sterling’s EV to EBITDA ratio is about 7, which we think is inexpensive compared to competitors. Moreover, we believe the stock could benefit not only from increased construction business but also from investors’ willingness to accept a much higher EV to EBITDA ratio.”

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